Question

1. What variables should one use to analyze companies in the Food Products Industry?

What methodology was used to collect and analyze the data? (2) Did the source collect the data? (3) When was the data collected? (4) Why was the data originally collected?   (5) How dependable is the data's source?

Answer 1

Food Products Industry

Variables to analyze companies in the food products industry:

To understand about food products industry we will first look the PESTLE analysis of the industry:

PESTLE: stands for-

• P- Political
• E- Economic
• S- Socio culture
• T- Technological
• L- Legal
• E- Environmental

Political : Government across world has varoius regulations over the food industry which includes cleanliness of kitchen and production unit, the standards for storing and transporting produce products, packaging of the products, and even the requirements for laborers in the food business. This hows the government is very strict and the food industry is tightly regulated. On the brighter side it ensures the consumers of product get highest quality of product and aren't exposed to poor nutrition.

Economic: The people over the world are earning hard and are getting richer. They have huge amount to spend on the luxury life.The upper class, middle and lower middle class everyone is having enough to spend on food like restaurants. The overall foor industries revenue is growing as people are prefering to eat outside rather than individual cooking. There is growth in the restaurants, the food apps, and the food tranporters which has also increased employment in this sector.

Socio culture: People are these days becoming health concious they believe in healthy diet for the body. It has been a trend these days for a healthy diet. People are prefering food which contains more nutritions like protein, vitamins and less carbohydrates and fats. Even consumers are prefering fast food centres to be healthier in some ways. The food industry should have a better understanding on the demands of the customer.

Technological: Automation is best technical revolution we are seeing in the food industry. Ex. McDonald's which has self checkout screens at fast food venues. Automation will increase the production, improve profitability, will produce best quality and reduce human errors.

Legal: This includes the rules for high standards for safety matters. There are rules for how to store food, how it should be transported and prepared. The rules states the temperature at what it should be cooked and stored, what ingredients can be used at what amount, what are the ingredients which are harmful and are not to be used in food products. Even the company has to clearly mention the nutrition in the package and label the key ingredients. Any company breaking this rule have to pay costly lawsuits.

Environmental: Consumers are preferring organic vegetables and fruits rather than the hybrid ones. Even there is veg and non veg segmet of customers who are directly affecting the food industry. The non veg producers are harming the environment in many ways by not properly decomposing the leftovers throwing them in the river or ponds. Even deforestation has been done to make poultry farms and food processing units.

To analyze the food industry one must consider such as the contents of a truck arriving, a days worth of production, or the products stored in warehouse and cold storage .

Variable of analysis:

• Official samples: Collecting samples for official and government laboratory testing to check whether safe food are being send to consumers.
• Raw materials: Raw materials are analyzed before accepntance to see they are of good quality.
• Process control samples: In this the processing of food in the manufacturing unit is continously checked to see it is in efficient manner and if any problems arises it can be detected there itslef.
• Finished products: Samples of the final product is surelt tested to check safety, meets legal and labeling requirements.

Methodology To collect the data:

1. Primary Data: Collecting primary data such as marketeing startegies, production methods, pricing strategies, adaption of food regulations etc. The primary data for food industry can be collected by three ways by observing behaviour, by experimentation or survey. Survey from consumers will help alot to know the quality and demand of the product. It can include questionnaire.

Discussion and interviews with varoius aspects and class of people. It can be an unstructured open interview.

2. Secondary data: Secondary data can be taken from various research laboratories who have already worked on the topic. From competitor's market startegies to understand how our product can tackle it.

(2). Yes, the source will surely collect the data as it includes. bothe primary and secondary data. This data will help in both qualitative and quantitative analysis of the food product industry.

(3). The data can be collected as per company's convenience before launch of a new product or to change flavour of a product.

(4). Data is always orginally collected as in food industry quality of the food mtters. Here, the researcher can use Stratified Quota convenience sampling method.

Stratified because it will consider some particular locationsfor the survey

Quota as researcher with higher authorities can decide a quota of hundred households from particular region.

Convenience as the researcher saw to his convenience to those consumers who were willing to participate.

The researcher is of strong conviction that the sample size selected for the survey is a representative sample of the universe.

(5). The data source is dependable as data could not be extracted if it is not taken from the consumers who are using these food products.